The Federal Government has announced a new program to provide stimulus for new home building and renovations to existing properties as a means to keep tradies and the building industry in work.
The program is short on details at this stage but what has been announced so far is a grant of $25,000 to contribute towards the cost of building a new home, and also a grant of $25,000 to existing home owners who commit to undertake ‘substantial’ renovations or home improvements to their existing homes.
As to what substantial means, at this stage all we know is what the Prime Minister stated on radio as meaning that the home owner would have to contribute a significant sum themselves on top of the grant. Likely in the order of at least dollar for dollar, possibly even more.
So whilst a substantial kitchen or bathroom renovation that provides work for multiple trades may meet the requirements, a new flatpack kitchen from Ikea or a modest paint job is unlikely to qualify.
The $25,000 grant is less than the proposals from the Master Builders Association of $40,000 and from the Housing Industry Association of $50,000.
There has been no detail provided at this stage as to whether the Grant will be on top of any grants offered by the states, or whether the state grant will be included and a top-up grant provided by the Federal government.
No doubt more details will be released over the coming days and weeks. For those considering building a new home or a renovation to their existing home, it will certainly be a welcome benefit. At the same time the stimulus will likely provide some level of comfort for hard working tradies.
The Brokers at Bernie Lewis Home Loans will have all of the information regarding the Grant as it comes to hand, along with information on existing grants that might be available.